Bankruptcy - does it haunt you

RE: Bankruptcy - does it haunt

I think bk haunts you for 7-10 anytime after that I think you have a chance, far as employment if you apply for a job that requires top security clearance they will deny you employment.

 

RE: Bankruptcy - does it haunt

I have worked on bankruptcy cases where those filing either had top security clearances at the time or went on to obtain them. It varies with employers, but bankruptcy isn't a deciding factor with the federal govenment.

 

RE: Bankruptcy - does it haunt

bankruptcy will haunt you for a long time.
I became diabled after several surgery's
from 1992 to 1995. we had aloy of medical bills and thought about bk. but decided not
to we still have some bills left but we are seeing the top of the mountain. we were able
to get our first unsecured visa in 1998.
Even with a garnishment at that time. we now have 4 cards all unsecured and make our pymts on time and for more than the min.
Our friends had alot of bills and declared bk
in 1994 to this day they still can't get a card or a car loan, so it definitely stays with you.

 

RE: Bankruptcy - does it haunt

My parents had a bankruptcy filed in early 1993 and got a brand new car in 1996. Try a ford dealship and put money down. They can get a new car.

 

RE: Bankruptcy - does it haunt

I speaking about a top security clearance with the Fed Govt Agencies as Secret Service, Dept of Treasury,and Deptof Justice. I don't think they would hire you if you file bankrupcy.

 

RE: Bankruptcy - does it haunt

While is may impact your ability to get a security clearance, it is not an automatic exclusion. The Defense Investigative Service, or who ever is conducting the investigation will generally interview the subject about the BK or any other deogatory information they find. The subject can always issue a FOIA request in response to an adverse action such as a clearance denial. If the BK was due mainly to financial irresponsibility, it's likely they will not get a clearance. If it was a consequence of something beyond their control like a major illness in the family or a natural disaster it will not likely preclude the individual from being granted a clearance. Other reasons such as losing a job, or divorce would fall into a gray area and the circumstances surrounding the situation would be investigated further.

 

RE: Bankruptcy - does it haunt

Car dealers are typically the easiest to get loans from with bad credit for a number of reasons.

1) The generally have captive financing organizations like Ford Motor Credit, or GMAC, who do nothing but write car loans. They might be having a financing special of 3.9% for 48 months that is being subsidized by the parent company. The car manufacturers want to sell cars and understand that most people can't afford a new car unless they can pay for it over time. It's in their own best interest to make sure there is 'easy financing' available.

2)It might be easy to get, but if you have bad credit you will pay through the nose for a car loan. You will have to put down enough money to cover the depreciation on the car once you drive it off the lot and it becomes 'used' (or it today's marketing euphamism 'previously owned') and you will pay a very high interest rate.

3) Car loans are secured loans. The security is the vehicle itself which can easily be repossessed if the loan goes into default.

 

RE: Bankruptcy - does it haunt

Actually the agencies cited (Secret Service, DoJ, Treasury) issue very few of the highest clearences. The highest level of clearance is called "Sensitive Compartmented Information", or SCI for short. SCI is mainly concerned with intelligence and counter intelligence information. The agencies which issue the most of these types of clearances are the Department of Defense and the Military Services, the CIA, the National Security Agency (NSA), which is part of the DoD, and the National Reconnaissance Office (NRO), which is the part of the CIA that runs all of the spy sattelite operations.

All FBI agents are investigated for this type of clearance, but only the ones who actually work in counter-intelligence have access to that type information.

Certainly people within other departments of the Government also have those type of clearances if they are dealing with anything that involves intelligence sources and methods. Certainly the Secret Service would fall into that category.

When I was in the Air Force, I had an SCI clearance. I knew other people who were also cleared whose lives were a finanical disaster and others who were alcoholics, spouse abusers, and had other bad habits. The whole thing is very subjective.

I doubt that you would get a high-level job with the DoJ or the Treasury department if one had a track record of financial irresponsibility though.

 

RE: Bankruptcy - does it haunt

J. Edgar is correct. If the bankruptcy is due to irresponsibiliy, that could be a problem. You can be sure it would be questioned. But the F.B.I. has hired one bankrupt person I know of and several DOD people didn't find it a problem. However, it is subjective and poor credit could be just as much a consideration. Character is important and some of our most senior political leaders couldn't get top clearances if they hadn't been elected

 

RE: Bankruptcy - does it haunt

I filed BK in '98. I also started a job in '98 working for a casino in the IT Department. Part of the process was to receive clearance for your gaming badge. There were three levels, IT personnel were assigned level 2 clearance. Level 2 clearance required the gaming commission (state police) to run a 5 year background history check with the FBI, you were fingerprinted, and entered into the national crime system. One of the questions was have you/ or are you in the process of filing B/K? Which I answered yes to. I was approved for the requested clearance level, which gave me access to surveillance, the cages, hard count, soft count, and the vault. So I guess the B/K from a job standpoint hasn't hindered my ability to secure employment in a high security environment. However, there is a huge difference between national security clearance, and working for a casino. Overall, has the B/K haunted me? Kinda of. I was able to purchase a car in '99. However, at 20.9% interest. I have been able to secure only sub-prime credit cards on my own. I have been turned for every prime card offered I have received. However, I'm a AU on all of my wife's cards, so I haven't applied for a card since '01. My scores today are 689 EXP (true FICO from mortgage app) (647 EXP FAKO), 639 TU, and 659 EQ. I'm in the process of purchasing a home, and so far so good, as part of my documentation I received a FHA endorsement letter, but there again my wife is the co-borrower with scores of 747 EXP, 744 EQ, and 727 TU. This very well maybe the factor in the favorable rating from the FHA process.

Anyway hope this helps....

PolarisA3